EUR: Greater risks for a move above 1.17 as the $ rally loses steam - ING

According to Viraj Patel, Foreign Exchange Strategist at ING, the ECB’s Nov economic bulletin did shed light on the thinking underpinning the central bank’s QE taper policy, with officials explicitly noting that the EUR plays a key role in the policy reaction function.

Key Quotes

“As long as EUR/$ continues to trade this this side of 1.20, we doubt the single currency will be a big concern for the ECB. There is certainly scope for further upside in the near-term as the USD rally runs out of steam; a move above 1.1680/90 would be supportive of a corrective move  higher.”